Case Study: Tsogo Sun

“Incentives are the cornerstone of modern life”(Levitt and Dubner 12). Levitt and Dubner once mentioned in their book “Freakonomics”. According to Oxford dictionary, incentives are something tends to incite to action or greater effort, as a reward offered for increased productivity (“incentives”). In business field, incentives are something given by bosses to encourage their employees to endeavour in bringing benefits to their business. For a simple example, the employee who hits the monthly or year sales target will get cash or prizes as incentives. Apparently, these incentives are something that motivates employees maintains their great performance and also to motivate other employee, whoever wants to get the incentives, work harder.

A Performance-Based Pay system is an increasingly popular compensation method used by organizations to increase productivity. A goal for all companies is to try and remain competitive and control costs, this is a reason for performance-based pay systems becoming more popular. This type of system attempts to link compensation to performance. (Gena Richter, 2002) These systems are directly tied to organization or individual performance and are most effective when based on objective measures of quantity or quality of performance. If we wish to have a direct impact on work motivation, it must be linked directly to the performance of desired behaviors. In order for to put this type of system into place, performance evaluations must be conducted regularly , as well as training and development for those with performance that isn't quite up to par. These additional resources will be necessary for our organization if we implement a performance based pay system. (William B. Bernathy, Ph. D., 2004)

Since there is little or no difference between the salaries increases of employees who meet production goals and those who do not, some employees have said they are not motivated to achieve the goals, even if they are capable of doing so. The company must ensure that employees meeting company goals are rewarded with bonuses, salary increases, or other incentives that are greater and more appealing than those received by employees not meeting the goals. The company could further differentiate the

Clearly defined goals as they relate to the organization can motivate employees through goal setting. Goals challenge to employees to make them want to explore new technology, ideas, and gain insight from a diverse workplace. Additionally, giving employees more responsibility will make them believe they have contributed with a sense of higher importance. Without motivation in the workplace, a business will suffer from the lack of efficiency from employees. Perhaps the most significant of increased employee motivation is that of increased productivity (staff@incentives.com, 2010). Therefore, it is important that employers give their employees an opportunity to work hard for their reward to obtain a high level of performance, which is an essential to the success of any business.

Have a one-on one meeting with the employees and leaders of the departments that are not meeting expectations to provide additional training, corrective actions, or otherwise work together with that particular team to develop a plan to improve, which would further empower the teams (Newstrom, 2015). For the teams who are meeting production goals in their department develop a rewards and recognition program so that the department or specific employees who have gone above and beyond could be recognized. This monthly awards and recognition program could replace the monthly financial bonus by providing another type of motivational and reward factor, which could be understood through the Equity Model, in which the employees would still see reward outcomes from their monthly inputs, in addition to the potential of a financial bonus (Newstrom,

A well-articulated compensation philosophy drives organizational success by aligning pay and other rewards with business strategy. It provides the foundation for plan design and administration and anchors current and future plans to the company's culture and values (Kaplan, 2006, p.32). Recognizing and rewarding achievement is the cornerstone of the company A’s compensation philosophy. The mission of the company is to attract, select, place and promote all individuals based on their qualifications. The company believes that performance-based compensation helps attract, develop and retain talented professionals. In addition to base pay which based upon local market conditions and targeted to be above market, the company provides the following types of potential compensation to reward performance:

The arrangement would be to help these individuals out. With GCU expanding each year since it turned into a For-Profit institution and removing homes from these individuals the slightest they can do is bail the general population out of their homelessness. Stated on Sun Topia “There are only 14 short lived free safe houses for people who require a place to remain.” One solution would be to build an off campus shelter that is sponsored by the great people of GCU. In this shelter the school can offer the homeless two meals a day, shelter, hygiene essentials, and a clean bed they can sleep in. this shelter would not be a permanent home but a place that a person can use to bounce back onto their feet and get a job and find a permanent place to

2. Recommendations: Every budget and project needs a budget. The budget will help with planning and ensure that the team is keeping expenditures under control and also will give the team a target of what needs to be accomplished. The first question the team should ask before undertaking a project is “how much is this going to cost and what the value is to the company? The company needs to have a cost benefit analysis to find out if the cost of the project is justified by the value and benefit it brings into the organization. The projects are supposed to be approved by the finance department before they are undertaken to ensure that there are funds to fund the project.

The document should also identify who is responsible for monitoring the implementation of the project and to make decisions based on the results. For example, the Committee will expect executives to report regularly to the full board on the status of implementation and progress of the overall strategic objective. In turn, the executives could expect regular situation reports on the situation of middle managers to achieve their goals and objectives assigned to them.

The Project Manager will communicate relevant information directly to each member of the team and the Project Manager will disseminate all team-wide communications. The Project Manager will also be responsible for any direct communication with the Project Sponsor and/or the Customer. Weekly meeting minutes will also be the responsibility of the Project

In order to achieve the goals set by the department heads, communication and interaction within the team is important. We would usually begin a project with a whole team meeting and brainstorm ideas. Everyone would be invited to these early meeting to ensure that all members of the team have an opportunity to voice any concerns or make any suggestions they may have. We would also invite the team leaders from other teams that may be involved or affected by the project to ensure the goals are achievable. Once tasks have been agreed upon and set, communicating the progress both up and down the chain is important. I would expect progress reports from my team members on an agreed time frame. I would in turn provide progress reports to my managers and department heads. These reports can come in many forms from Emails, telephone calls, meetings or sometimes one on one conversation. It is important to promote synergy, if a team works well together the final result can often be far greater than the sum of its parts.

Reward and recognition programs must connect the needs and expectations of the workforce with the company’s overall goals and strategies. A program that reinforces important company values and goals will encourage employees to act in line with such goals and emphasize the importance of achieving these goals. Alternatively, rewards which do not connect with organizational goals may convey a misleading message and encourage employees to act in a manner that does not facilitate the

1. Incentive compensation is a major practice that has continually been adopted by healthcare organizations, especially for managers. Most of these organizations use this tool as a means of rewarding employees financial for outstanding performance. Generally, incentive compensation involves the use of monetary reward for managers to attain specific established goals. Therefore, incentive compensation can be a motivational tool that benefits health care managers and the entire organization because it enables managers to achieve greater compensation while promoting organizational productivity. As the Chief Executive Officer of a hospital, I would design an incentive compensation program for my management team by aligning the financial rewards with business objectives and people costs. This will involve the use of a comprehensive approach that examines basic pay, health benefits, incentive opportunities, and retirement programs. The alignment of the compensation program is geared towards promoting organizational productivity and employee motivation.

Keeping employees motivated in addition to creating incentives and/or additional ways for employees to receive more compensation will create better performance overall within an organization. Contrary if company B gives their employees incentives to perform, without any motivational tactics they probably will not have as many top performances as company A, in addition the company may only seek short term rewards verses have long term success. Lack of motivation for employees within an organization, can cause long term damage for the company’s success. Different things motivate everyone; therefore there should be a system in place to keep employees motivated for the long term success of the company. In the MBM textbook under the concept of incentives, compensation, and motivation, there are a couple of different views of how it should be applied within an organization. We will discuss The Social Role of Profit, Personal Profit and Losses, and the way Market-Based Management view how incentives, compensation, and motivation should be applied and the things that effectively drive employees’ actions while at work.

An incentive pay program can reward employees who continue to produce superior work or encourage employees who already produce good work to best. Sometimes, use an incentive system when employees are lack of enthusiasm of getting down to work and improving things. If everyone in the same job classification gets the same pay, there is no real incentive to do an outstanding job (French, 1990). Various incentive plans used to motivate all employees such as production staff, sales staff, administrative staff and managerial and professional staff on an individual basis. To be improved employee work performance, the incentive pay programs need to be fairly matched with the employees’ expectation. Properly designed and maintained incentive pay program has the potential to increase employees’ productivity and work performance.